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Auto Industry

In Leipzig, carmaker Porsche inaugurates its biggest plant

The carmaker Porsche has opened a new production facility in Leipzig, Germany, the biggest new plant in its history. The Volkswagen brand called the city the perfect location for producing its new Macan model.

Porsche invested 500 million euros ($680 million) in its new facility in the eastern city of Leipzig, which the Stuttgart-Zuffenhausen-based manufacturer announced had become a second home.

The company reported that it had created 1,500 new jobs on the ground, adding to the thousands of people who had already worked for Porsche in Leipzig before.

The new facility marked the company's largest new investment project and was built with a view to boosting Porsche's Macan model, the company's youngest offshoot and a smaller version of its big brother, the Cayenne SUV. Porsche announced that some 50,000 units would be produced at the new facility annually.

A company gem

Even before the new plant, workers in Leipzig produced 107,000 units of Cayenne and Panamera cars a year, the bulk of Porsche's overall output.

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The luxury manufacturer remains a major subsidiary of Volkswagen's multibrand group. In the first nine months of 2013, Porsche sold 115,000 units worldwide and washed some 1.9 billion euros in earnings before interest and tax into VW's coffers.

Volkswagen's own brand accounted for 2.1 billion euros on the sale of 3.5 million units in the same period.